Xpressbees raises $80 mn from Ontario Teachers' Pension Plan at $1.4 bn valuation

File photo

Xpressbees, the end-to-end logistics platform, has raised $80 million from Teachers’ Venture Growth (TVG), the late-stage venture and growth investment arm of Ontario Teachers’ Pension Plan. The Xpressbees deal marks Ontario Teachers’ first investment in India from the TVG platform.

The Pune-based company said it will use the fresh funds for its future ambitions but did not disclose exact details. While Xpressbees did not shed light on the valuation, sources told Moneycontrol that the company was valued at $1.4 billion in the round, unchanged from its previous fundraise in April.

The $80 million round will likely be the last one for Xpressbees which hopes to go public soon.

“We believe the logistics sector is at the cusp of technological disruption and this is the right time to expand service offerings to address the growing needs of businesses and consumers. We are elated to partner with the TVG team who bring rich experience and a vast global network which will help as we scale our end-to-end platform to cater to the next level,” Amitava Saha, Founder & CEO Xpressbeessaid, said.

With the latest fundraise, TVG joins Blackstone, TPG, ChrysCapital, Alibaba and Gaja Capital who have backed Xpressbees.

With fresh capital in hand, Xpressbees said it will expand its suite of offerings through 'selective inorganic acquisitions'. The comment comes months after it acquired TrackOn, another logistics player, in August and entered the customer-to-customer (C2C) courier services space.

Xpressbees also competes with larger  players like Delhivery through B2C Express, B2B Express, third party logistics (3PL), cross-border operations, shipping aggregator and SME courier services.

The company today is present across over 5,000 cities and towns, and serves 20,000 pin codes. Xpressbess said it delivers over 1.5 million packages per day which compares with about 6.7 million parcels each day for Delhivery.

Xpressbees said it now has over 100 hubs across India, more than 3 million square feet of warehouse capacity and operates across 52 airports in the country.

"Led by a strong team, Xpressbees has established a highly scalable and efficient asset-light model with proven execution capabilities. We are delighted to partner with Amitava (Saha) and the Xpressbess team in executing their vision to build an industry-leading business,” said Deepak Dara, Senior Managing Director and Head of India at Ontario Teachers’ Pension Plan.

Xpressbees reported a 33 percent year-on-year (YoY) growth in revenue which came in at Rs 2,531.5 crore over FY23, while its losses shot up by over 6X to Rs 180 crore during the same period.

Founded in 2015, Xpressbees was the logistics arm of Firstcry but later spun off as a separate unit. Since then it has raised over $600 million in capital and is valued at $1.4 billion.